Accelerating the development of energy conservation and environmental protection industry is very important to promote industrial restructuring and the transformation of economic development in China, and is an important strategic choice to tackle climate change and to seize the high point of future competition. This research demonstrates the current situation of energy conservation and environmental protection industry in China, and analyzes the problems faced by the energy conservation and environmental protection industry in the developing process, key areas in future development, and direction of technical development. It proposes the target, key supporting projects, and suggestions to energy conservation and environmental protection industry development in 13th Five-Year Plan period in China.